Preparing For When the Economy Finally Collapses

I’m a coding illiterate who needs assistance in developing the series of interdependent applications described in the attached document. As you will see those who sign on to this task will be paid in gold.

I’d prefer not to look outside the pioneering crew building the SAFE Network for this job which I perceive is likely to quickly be taken up by most people and corporate entities in the World.

Here follows the attachment:
Preparing For When the Economy Finally Collapses

An introduction to the Gold Trade Note

John Seale 2021

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” ~ Thomas Jefferson

“Gold is money, everything else is credit.” JP Morgan, 1912

A long habit of not thinking a thing wrong, gives it a superficial appearance of being right, and raises at first a formidable outcry in defense of custom. But the tumult soon subsides. Time makes more converts than reason. ”– Thomas Paine

“You never change things by fighting the existing reality.

To change something, build a new model that makes the existing model obsolete.”
― Buckminster Fuller

The creation of money out of thin air can only go on for so long and we are now rapidly approaching the end of fiat currencies of the World. Central banks have recently embarked on an unprecedented serge of “money printing” that will hyper- inflate fiat currencies to worthlessness. The resulting collapse will be a catastrophe unless we can develop a better solution than barter and that’s the purpose of the Gold Trade Note.

In 2009 Dr. Zhou Xiaochuan, Governor of the People’s Bank of China called for a reform of the international monetary system wherein he, inter alia, wrote:

“The desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”. [emphasis in the original]

And in 1974 Friedrich Hayek published Denationalisation of Money: The Argument Refined .

But fiat money is still ‘nationalised’ and there never has been an ‘ international currency disconnected from individual nations’.

If Thomas Jefferson was right money should be created by the people not the banks! Hayek agreed. The consequences of the looming catastrophe should not be borne by the people.

Please now consider the recent commentary of the following banking “authorities”:

  • “By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis.” Mervyn King, former head of the Bank of England.
  • “The dominance of the greenback is the root cause of global financial and economic crises. The “ solution to this is to replace the national currency with a global currency .” Justin Yifu Lin former World Bank chief economist.
  • “W e need to change the game. There should be no illusions that the international monetary and financial system (IMFS) can be reformed overnight or that market forces are likely to force a rapid switch of reserve assets. But equally blithe acceptance of the status quo is misguided. Risks are building, and they are structural. As Rudi Dornbusch warned, ‘In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.’ When change comes, it shouldn’t be to swap one currency hegemon for another. We would do well to think through every opportunity, including those presented by new technologies, to create a more balanced and effective system.” Mark Carney in his recent speech at Jackson Hole admits that the post Bretton Woods system along with entire fiat edifice has failed.

Mark Carney’s speech bears an unexpected resemblance to that of Zhou Xiaochuan and Friedrich Hayek as does also that of Mervyn King and Justin Yifu Lin. But the problem seems to be that no one has made any attempt to ‘change the game’ . Arguably these banking authorities can’t agree on how to ‘reform the IMFS’. Instead, central banks and governments will struggle for fiat-based solutions which are bound to fail because the people no longer trust unbacked fiat.

Banks, if they survive should be regulated to disallow fractional reserve banking. Central Banks should be owned and operated by and for their respective nations; not private owners.

Money can and should be created by the people trading commodities, goods and services.

So here follows my suggestion for anyone who desires to switch to sound money to ‘change the game’ . There’s no need to wait for a government top down decision, it’s an individual decision for everyone; money belongs to the people not the State! The simple method to achieve that is to replace fiat with a digital debit and a credit. Such units would be denominated in gold, meaning the credit units could, on demand be redeemed for physical gold. The benefit will be that people’s purchasing power will “ remain stable in the long run”, whereas under an unbacked fiat regime it will eventually reduce to nothing, as has every fiat issue since time immemorial.

The new currency units could be called the Gold Trade Note (GTN) and to facilitate redeemability of GTNs in gold, participants would join as an international not for profit Strategic Alliance (Alliance) whereby they are able to:

  • trade, invest and otherwise deal with property, commodities, goods, services and fiat and digital currencies;
  • pay and receive money;
  • communicate and publish utilising voice, text and video technologies;
  • maintain accounting records reflecting every transaction;
  • safely and securely store and retrieve data from the distributed network of the Alliance and
  • use such of the other services listed by other Participants on the website of the Alliance.
  • All communications relative to the above would be self encrypted from end to end.

The above Functions of the Alliance consist of a series of applications (apps) running on the SAFE Network, the new secure open source Internet which is close to completion.

The Gold Trade Note (GTN) simply consists of a debit and credit. Each credit unit is deemed equal to one hundredth of one gram of 99.99% pure allocated gold (gold). 100 (GTNs) = 1 gram of gold. Participants can redeem their GTNs from the Alliance at call in gold kilo bars or bars of one gram or 100 grams.

  • GTNs are earned from sales and spent on purchases and lease payments and in the case where gifts or voluntary contributions are made GTNs are spent on making that gift or voluntary contribution and earned upon receipt thereof. All such transactions must be conducted on the website of the Alliance;
  • GTNs can also be purchased from the Alliance only with payment in gold; or
  • earned as an authorised creator of the Facility.

GTNs are not negotiable in any other environment.

Gold held by the Alliance will be vaulted at various locations outside the banking system as the pool-allocated property of all its Participants. The entire gold holding of the Alliance will be audited annually.

At any given time such gold will be owned by Participants in the ratio that their GTNs bear to all GTNs on issue. There will be no limit to the number of GTNs on issue at any one time or place. The website of the Alliance is proposed to be largely automated. Each transaction will attract a micro fee to establish a common reserve to make good any losses that the Alliance might incur due to loss or damage by any cause of its gold and to offset the cost of system establishment, maintenance and enhancement from time to time. Transactions are recorded in real time by the respective parties’ accounting records; there is zero risk of double spending as the automated website will reject transactions exceeding the available credit balance of the account of the purchaser or donor. The only records that are retained after the transaction has been completed are those securely documented and stored in the buyer’s and seller’s accounting records maintained in encrypted distributed chunks on the network. As with all existing accounting procedure there is no central ledger or ‘block chain’.

Next

The Multilingual Global Market Place (coming soon)

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:100:

Obsolete. We have Bitcoin. It doesn’t require custodians

Seriously; could you imagine the oil/grain/mineral commodity sector trading in bitcoin? Also think of the grocer and all the traders in goods and services. Are they likely to all have acquired bitcoin? Personally I think bitcoin is little better than tulips

I could, but wouldn’t be the best system IMO. The best would be Safe Networks DBC’s.

I suggest you wait until Safe Network is in beta, then there will be a technological foundation in place to create a decentralized gold custodial system using DBC’s to trade gold/silver/platinum/oil whatever via the Safe Network DBC’s.

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Plus most gold bugs hate the Bitcoin is gold 2.0 argument so going with SN Token would be a fresh take.

Just skimmed the topic so hopefully that makes sense.

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[quote=“Nigel, post:5, topic:35510”]
What do you mean by the SN Token? Gold has been money for 5000 years. I think you’ll discover many desirable features of the GTN when you read my doc. Think no inflation/deflation, no bank or creditit card charges, no Great Reset from the Davos mob.

Thanks for the advice to wait until Safe Network is in beta. Is your reference to DBC’s distributed blockchain? If so I don’t think that option would be globally acceptable.

I only skimmed the topic so probably shouldn’t have chimed in without a more comprehensive read. Let me go over the topic again before I form a proper response.

No. DBC stands for Digital Bearer Certificate. The Safe Network is being designed to manage these certificates in a decentralized manner (no central mints/bank). These DBC’s can wrap other tokens, so could wrap a gold-backed token as well. These can then be traded securely on the network. There is no blockchain - instead uses some clever tricks to prevent double-spending. If you read the last two updates here on the forum, you can get some ideas as to how that works.

To give an example … if you are a trusted gold/silver dealer, you could create a token locally on your (very secure) computer. You could then take those tokens and use DBC’s on Safe Network to wrap them up. Then those DBC’s can be traded on the network around the globe - you don’t need your own network to validate any of it. If someone demand gold, then they send the DBC to you - you verify that it’s the token you created and then you can send them the gold and destroy the token - or similar.

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WOW! Let me absorb what you say and catch my breath. Then I’ll revert to you. Thanks again.

John